LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable David Sibley, Chair          IN RE:  Senate Bill No. 702
         Committee on Economic Development              By: Truan
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
702 (relating to residential fire protection sprinkler systems
and to an insurance premium discount for the use of such a
system) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend the Insurance Code to allow residential
insurance policyholders with fire protection sprinkler systems to
qualify for a premium reduction with a certified inspection.  The
bill would authorize the Commission on Fire Protection to create
a licensing or registration program for fire protection sprinkler
system contractors and the Commissioner of Insurance would
establish the premium reduction amount.

Implementation of the provisions of the bill could result in
fiscal implications for the Commission on Fire Protection, but
the implication cannot be estimated because the number of
potential licensees are not known and the licensing fee would be
established in rule adoption proceedings.  However, the
Commission would not anticipate significant fiscal implications.


No significant fiscal implication to the State is anticipated.

No fiscal implication to units of local government is
anticipated.    




 Source:  Commission on Fire Protection, Department of Insurance
          LBB Staff: JK, RM, RR